Speciality Medicines Ltd Auditor Reports

RESTATED FINANCIAL STATEMENTS

To,

The Board of Directors

Speciality Medicines Limited

913, One World West,

S. No. 396, FP 119, Village- Vejalpur, Ahmedabad, Gujarat, India, 380051

Dear Sirs,

1. We have examined the attached Restated Financial Information of Speciality Medicines Limited (the "Company) comprising the Restated Standalone Statement of Assets & Liabilities, As Restated as March 31, 2025, March 31, 2024 and Restated Consolidated Statement of Assets & Liabilities, As Restated as at March 31, 2023, and the related Restated Standalone Statement of Profit & Loss and Restated Standalone Statement of Cash Flow for the period ended on March 31, 2025, March 31, 2024 and Restated Consolidated Statement of Profit & Loss and Restated Consolidated Statement of Cash Flow for the period ended on March 31, 2023, the Summary Statement of Significant Accounting Policies, and other explanatory information annexed to this report for the purpose of inclusion in the offer document prepared by the Company (collectively the "Restated Consolidated Statements" or "Restated Consolidated Financial Statements"). These Restated Consolidated Statements have been prepared by the Company and approved by the Board of Directors of the Company at their meeting held on September 01, 2025 in connection with the Initial Public Offering of Equity Shares (IPO) in SME Platform of BSE Limited.

2. These Restated Summary Statements have been prepared in accordance with the requirements of:

(i) Section 26 of Part I of Chapter-III to the Companies Act, 2013("Act") read with Companies (Prospectus and Allotment of Securities) Rules 2014; (ii) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations 2018 ("ICDR Regulations") issued by the Securities and Exchange Board of India ("SEBI") in pursuance to Section 11 of the Securities and Exchange Board of India Act, 1992 and related amendments / clarifications from time to time; and (iii) The Guidance Note on Reports in Company Prospectuses (Revised 2019) issued by the Institute of Chartered Accountants of

India ("ICAI"), as amended from time to time (the "Guidance Note").

3. The Companys Board of Directors is responsible for the preparation of the Restated Consolidated Financial Information for the purpose of inclusion in the Draft Red Herring Prospectus/ Red Herring Prospectus/ Prospectus to be filed with Securities and Exchange Board of India (the "SEBI"), SME Platform of BSE Limited and the Registrar of Companies, Gujarat, situated at Ahmedabad ("RoC"), in connection with proposed IPO. The management of the Company has prepared the Restated financial information. The Board of Directors of the Company is responsible for designing, implementing and maintaining adequate internal control relevant to the preparation and presentation of Restated Financial Information. The Board of Directors are also responsible for identifying and ensuring that the Company complies with the Act, ICDR Regulations and the Guidance Note.

4. We have examined such Restated Consolidated Financial Information taking into consideration: a) The terms of reference and terms of our engagement agreed upon with you in accordance with our engagement letter dated August 01, 2025 in connection with the proposed IPO of equity shares of the Issuer; b) The Guidance Note. The Guidance Note also requires that we comply with the ethical requirements of the Code of Ethics issued by the ICAI; c) Concepts of test checks and materiality to obtain reasonable assurance based on verification of evidence supporting the Restated Financial Information; and d) The requirements of Section 26 of the Act and the ICDR Regulations. Our work was performed solely to assist you in meeting your responsibilities in relation to your compliance with the Act, the ICDR Regulations and the Guidance Note in connection with the IPO

5. This Restated Financial Information of the Company have been compiled by the management from the Standalone Audited Financial Statements of the Company for the financial year ended on March 31, 2025, March 31, 2024 and Consolidated Financial Statement of March 31, 2023, prepared in accordance with the accounting standards notified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014, as amended, and other accounting principles generally accepted in India. The same have been approved by the Board of Directors at their meeting held on August 27, 2025, August 08, 2024 and September 30, 2023 respectively.

6. In accordance with the requirements of Part I of Chapter III of Act including rules made therein, ICDR Regulations, Guidance Note and Engagement Letter, we report that: (i) The "Restated Statement of Assets & Liabilities, As Restated" as set out in Annexure I to this report, of the Company as at March 31, 2025, March 31, 2024 and March 31, 2023 (Consolidated), are prepared by the Company and approved by the Board of Directors. These Statement of Assets and Liabilities, as restated have been arrived at after making such adjustments and regroupings to the individual financial statements of the Company, as in our opinion were appropriate. (ii) The "Restated Statement of Profit & Loss, As Restated" as set out in Annexure II to this report, of the Company for the year ended March 31, 2025, March 31, 2024 and March 31, 2023 (Consolidated), are prepared by the Company and approved by the Board of Directors. These Statement of Profit and Loss, as restated have been arrived at after making such adjustments and regroupings to the individual financial statements of the Company, as in our opinion were appropriate. (iii) The "Restated Consolidated Statement of Cash Flow, As Restated" as set out in Annexure III to this report, of the Company for the year ended March 31, 2025, March 31, 2024 and March 31, 2023 (Consolidated), are prepared by the Company and approved by the Board of Directors. This Statement of Cash Flow, as restated have been arrived at after making such adjustments and regroupings to the individual financial statements of the Company, as in our opinion were appropriate.

7. For the purpose of our examination, we have relied on: a) Auditors Report issued by the Statutory Auditors i.e. M/s. Rahul Mistri and Co., Chartered Accountants on the Audited

Consolidated financial statement for the year ended March 31, 2023 dated September 30, 2023. b) Auditors Report issued by us on the Audited Standalone financial statement of the Company for the financial years ended

March 31, 2025, and March 31, 2024 dated August 27, 2025 and August 08, 2024 respectively. c) The Company held 100.00% equity in SPEMED Techno Private Limited ("Subsidiary") up to February 28, 2023. On March

01, 2023, the Company sold its entire shareholding in the Subsidiary. Accordingly, the Subsidiary ceased to be a subsidiary of the Company with effect from that date. Consequently, the consolidated financial statements for the year ended March 31, 2023 include the financial results of the Subsidiary up to the effective date of disposal (i.e., for a period of 11 months). Pursuant to the disposal, the Company does not have any subsidiaries as on March 31, 2023, March 31, 2024, and March 31, 2025. Accordingly, the Restated Consolidated Financial Statements for the years ended March 31, 2024 and March 31, 2025 are the same as the Restated Standalone Financial Statements of the Company.

8. Based on our examination and according to the information and explanations given to us (and also as per the reliance placed on the audit report submitted by the Previous Auditors for the respective years), we are of the opinion that the Restated Financial Information have been made after incorporating: a) Adjustments for the changes in accounting policies, material errors and regrouping/reclassifications retrospectively in respective financial years ended March 31, 2025, March 31, 2024 and March 31, 2023 to reflect the same accounting treatment as per the accounting policies and grouping/ classifications for all the reporting periods, if any. b) Adjustments for prior period and other material amounts in the respective financial years to which they relate and there are no qualifications, which require adjustments. c) There are no extra-ordinary items that need to be disclosed separately in the accounts and qualifications requiring adjustments. d) There were no qualifications in the Audit Reports issued by the Statutory Auditors for the financial years ended March 31, 2025, March 31, 2024 and March 31, 2023, which would require adjustments in this Restated Financial Statements of the Company. e) These Profits and Losses have been arrived at after charging all expenses including depreciation and after making such adjustments/restatements and regroupings as in our opinion are appropriate. f) These have been prepared in accordance with the Act, ICDR Regulations and Guidance note. We have complied with the relevant applicable requirements of the Standard on Quality Control (SQC) 1, Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements.

9. In our opinion and to the best of information and explanation provided to us, the Restated Consolidated Financial Information of the Company, read with significant accounting policies and notes to accounts as appearing in ANNEXURE IV are prepared after providing appropriate adjustments and regroupings as considered appropriate. 10. We, A K Ostwal & Co, Chartered Accountants have been subjected to the peer review process of the Institute of Chartered

Accountants of India ("ICAI") and hold a valid peer review certificate issued by the "Peer Review Board" of the ICAI.

11. The preparation and presentation of the Consolidated Restated Financial Information referred to above are based on the

Consolidated Audited financial statements of the Company and are in accordance with the provisions of the Act and ICDR Regulations. The Financial Statements and information referred to above is the responsibility of the management of the Company. 12. The report should not in any way be construed as a re-issuance or re-dating of any of the previous audit reports issued by any other Firm of Chartered Accountants nor should this report be construed as a new opinion on any of the financial statements referred to therein. 13. We have no responsibility to update our report for events and circumstances occurring after the date of the report.

14. Our report is intended solely for use of the Board of Directors for the purpose set forth in the first paragraph of this report. Our report should not be used, referred to, or distributed for any other purpose except with our prior consent in writing. Accordingly, we do not accept or assume any liability or any duty of care for any other purpose or to any other person to whom this report is shown or into whose hands it may come without our prior consent in writing.

For M/s. A K Ostwal & Co

Chartered Accountants

Firms Registration No: 107200W

 

Amit M Ajagiya

Partner

Membership No. 140574

UDIN: 25140574BMGSIC4495

 

Place: Surat

Date: September 01, 2025